President’s ReportPUBLIC $95.4 FUNDING Sales Tax, Real Estate Transfer Tax. And Formula and...
Transcript of President’s ReportPUBLIC $95.4 FUNDING Sales Tax, Real Estate Transfer Tax. And Formula and...
President’s Report
October 10, 2008
RIDERSHIP
Preliminary September Ridership
System
UP4.0 Mil.
5.1%
Bus UP2.6 Mil.
5.7%
Rail UP1.4 Mil.
4.1%
Year-to-date Through September
System
UP21.8 Mil.
5.3%
Bus UP16.7 Mil.
6.7%
Rail UP5.1 Mil.
3.1%
‘09 BUDGET
DRIVERS
Fuel
Energy
Materials
Free Rides
Lower Tax Revenues
2009 Budget Drivers
8% of the budget
$54 million more than in 2008
BUS FUEL: $102.8 Million
Original ‘08 Budget
Diesel Fuel Price Per Gallon
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
112%
$0.06 $0.07 $0.07 $0.08 $0.08 $0.09 $0.09 $0.10
Jan-0
7
Ma
r-07
Ma
y-0
7
Ju
l-07
Sep-0
7
No
v-0
7
Ja
n-0
8
Ma
r-08
Ma
y-0
8
Ju
l-08
Sep-0
8
Nov-0
8
Ja
n-0
9
Ma
r-09
Ma
y-0
9
Ju
l-09
Sep-0
9
No
v-0
9
Traction Power Cost Per Kilowatt Hour
Co
st
per
KW
H
3% of the budget
Increase impacted by 2008 rate hike
ENERGY: $40 Million
34%
Original ‘08 Budget
25% Increase
7% of the 2009
budget
Inflationary pressure
driving up cost of
materials (especially
in construction)
Continue to look at
smarter ways to
purchase materials
Material costs
increased from ‘07 to
’08 budget
MATERIAL: $94.8 Million
31%
Original ‘08 Budget
Steel Sheet Metal
Wire & Cable
Asphalt
Source: Bureau of Labor Statistics
Free rides for 2009 estimated at $35.8 million
2009 Free Rides
Program Start:
March 17th
2008 budget projections for the Cook County Sales Tax are in line at mid-year
Proceeds from the Chicago Real Estate Transfer Tax fell well below projections
2008 Tax Revenues
$145,209$146,064
RTA Projected
Funds Received
Sales TaxJan. – Jun. 2008
RTA Projected
Funds Received
Chicago Real Estate Transfer Tax
Apr. – Sep. 2008
$22,061*
$42,000
* Preliminary Estimate for Sep.
48%
‘08/’09 PROPOSED
BELT TIGHTENING
Departments received a “mark” as much as 20% lower than the 2008 budget (non-safety)
Departments required to examine the service they provide for the dollars spent
Final product includes performance goals for 2009
Bottom line: We‟re providing the same service with 396 fewer employees
In addition there is a reduction of 101 capital positions and 135 FTEs associated with construction projects
Smart Spending
Analyzed and “leaned” key operations
Eliminated 396 positions
Examples of Leaning the CTA
Procurement and Warehousing Bus Maintenance
Abolished outmoded inventory
control function and replaced
with private sector model
Focus on industry lean model
Leveraged Federal money to
lease new buses233
198
15%
2008 2009
98Employees
Bus Maintenance
Material & Personnel
$7.7 Million
Savings
$1.7
Million
Savings
Department Headcount
Revenues vs.
Expenses
2009 Projected Revenue Vs. Expenses
$1,282.2
TOTAL
Sales Tax
Discretionary
Formula
Real Estate Transfer Tax
Other RevenuesA
Fares &Passes
Reduced FareSubsidy
Labor
Addl. ExpensesB
Bus Fuel/Power
$ 476.81
$ 302.4
$ 198.1
$ 155.3
$ 65.8$ 16.1
$ 67.5
A. Other Revenues = Investment Income, Statutory Contributions and Advertising, Charter and Concessions
$1,324.4
TOTAL
Material
$ 196.2*
$ 142.8
$ 890.6
$ 94.8
B. Addl. Expenses: Injuries/Damages, Security, Pension Obligation Bond Debt Service, Utilities, Maintenance/Repairs, etc.
EXPENSES
Without belt tightening in „08/‟09 the deficit would have been twice as large
2009 Revenue Vs. Expenses
$1,324.4 B.
EXPENSES
$1,282.2 B.
REVENUE
PUBLIC FUNDINGSales Tax, Real Estate
Transfer Tax. And
Formula and Discretionary
Funds
SYSTEM GENERATEDFares and Passes,
Reduced Fare Subsidy,
Advertising, Charter and
Concessions,
Investment Income,
Statutory and Other
Revenues
Labor, Fuel, Power,
Revenue Equipment,
Material and Other
Expenses
2008 Belt Tightening$36.3 Million
$558.9 M.
$723.3 M.
$42.2 Mil. Deficit
Recommended
Operating Budget
67%7%
8%
3%2%
3%10%
2009 Budget by Function
Labor
Power
Material
Bus Fuel
Injury/DamagesSecurity
Other
Impact of Labor Cuts
3%
Contractual Wage Increase
2009 Labor Costs
1.6%
Doomsday resulted in operator shortages which led to significant OT expenditures
6157 6120 6065 6063 6035 5957 5900 5864 5878 5941 5982 6089 61770
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
5700
5750
5800
5850
5900
5950
6000
6050
6100
6150
6200
6250 Chart TitleActive STO (FT and PT) OT Hours
Hours
of O
vert
ime
Fu
ll a
nd
Part
-tim
e O
pera
tors
Hir
ed
Aggressive Hiring Plan Saves Money
42% STO OT
754 Operators hired in 2008
Active STO Positions vs.
Unscheduled Overtime Hours Worked
Pension Obligation Liabilities
131.4 131.4 131.4141.4
156.6
2009 2010 2011 2012 2013
Pension Obligation Bond Debt Service
Dolla
rs in M
illio
ns
Closing the Gap
Fare increase to close the gap2009 Revenue Vs. Expenses
$1,282.2
REVENUE
Labor, Fuel, Power,
Revenue Equipment,
Material and Other
$1,324.4
EXPENSES
$95.4PUBLIC FUNDINGSales Tax, Real Estate
Transfer Tax. And
Formula and Discretionary
Funds
SYSTEM GENERATEDFares and Passes,
Reduced Fare Subsidy,
Advertising, Charter and
Concessions,
Investment Income,
Statutory and Other
Revenues
$558.9
$42.2 Mil. Deficit
$ 723.3
CTA Historical Pass Structure
0.30 0.30 0.30 0.30 0.30 0.25
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
0.25
10.00
15.00
20.00
5.00
100.00
60.0080.00 30 day pass ($75)
5 day pass ($18)
7 day pass ($20)
3 day pass ($12)
2 day pass ($9)
1 day pass ($5)
Rail Transit Card & Bus cash base fare ($2.00)
Bus & Rail Chicago card & Bus Transit Card base fare ($1.75)
Transfers ($0.25)
Price per pass
2.50
2.00
1.50
1.00
.50
00.25 0.25 0.25
Proposed Fare Structure
CTA FARE TYPES
CURRENT
FARE STRUCTURE
(EFFECTIVE 1/1/2006)
PROPOSED
FARE STRUCTURE
(EFFECTIVE 1/1/2009)
Full Fare Transit Card (TC) Bus $1.75 $2.00
Full Fare TC Rail $2.00 $2.25
Full Fare Chicago Card (CC) Bus $1.75 $2.00
Full Fare CC Rail $1.75 $2.25
Full Fare Cash (bus only) $2.00 $2.25
TC or CC Transfer 1 $0.25 $0.25
Chicago Card Bonus 2 10% Eliminated
1-Day Pass $5.00 $6.00
2-Day Visitor Pass $9.00 Eliminated
3-Day Visitor Pass $12.00 $15.00
5-Day Visitor Pass $18.00 Eliminated
7-Day Pass $20.00 $24.00
Full Fare 30-Day Pass $75.00 $90.00
U-Pass 3 - 20% Increase
Reduced Fare 4 TC or CC $0.85 Unchanged
Reduced Fare Cash (bus only) $1.00 Unchanged
Reduced Fare TC or CC Transfer $0.15 Unchanged
Reduced Fare 30-Day Pass $35.00 Unchanged
1 Transfer fare allows two additional rides within two hours of the first boarding
2 For every $20 purchase of pay-per-use fares, $22 of value is added to the card
3 Available through participating universities only; price change effective 2009 Fall Term
4 Reduced fares offered to eligible customers only
CTA/I-GO JOINT
FARECARD
CTA and I-GO Car Sharing announce a joint smart card
Can be used to gain access to I-GO vehicles
and ride the CTA
Provides strategic connections
Program part of CTA‟s commitment to promote the use of public transportation
New Card Provides Traveler Options
Register online for both services
Single card works on CTA buses and trains and unlocks their reserved I-GO vehicle
Current Chicago Card Plus cardholders and I-GO members who wish to take part in the program will need to re-register in order to be considered
New Option Available at Year‟s End
Chicago Card Plus is an electronic farecard with its balance maintained in an online account
New joint card will work the same way